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Delivering 10X Improvement to Risk and Regulatory Reporting Through Cloud and AI

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Respond quickly to the ever-changing risk and regulatory landscape by adopting cloud and machine learning, derive new insights and allow risk management to become more embedded into operational processes.

Enterprise agility and the ability to innovate, adapt and respond quickly to the ever-changing risk and regulatory landscape is no longer a choice, but the cornerstone of successful digital transformation and commercial growth. Traditional access to and ways of managing data invariably create challenges in dealing with multiple data repositories, reconciliations, fire-drills, etc.

In response, the move to cloud is increasing significantly. It enables risk analytics and regulatory reporting at scale in a secure environment with data storage, management and encryption capabilities as a standard. In addition, as regulatory reporting requirements become more granular, machine learning can help facilitate new insights and allow for risk management to become more embedded into operational processes.

This webinar will address the day-to-day challenges in risk management and regulatory compliance, while also exploring how technological innovations can provide massive improvements and potential.

Key themes

  • Real-life data challenges in the eyes of risk managers: can compliance, fraud detection and identifying liquidity positions be improved through the use of AI?
  • Innovative approaches to streamline regulatory reporting to derive deeper customer insights from data at the moment of truth.
  • Reimagining operations: how to modernise the data infrastructure to accommodate data explosion, drive flexibility and deliver a more cost effective outcome.
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Case Study

How a Mid-Sized Firm is Shrinking Inventory Carryovers 50% with AI

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In addition, the 25-man manufacturing company is able to compete with much larger e-commerce retailers by being able to improve the accuracy of demand planning, make quicker decisions, and make better pricing decisions to optimize profitability--all thanks to AI.

For more than 10 years, NMK Textile Mills has manufactured bed linens for major retailers in the United States and Canada. As e-commerce exploded, the company’s co-founder saw an opportunity to grow the business. So, in addition to manufacturing bed linens wholesale for retail customers, NMK Textile Mills reworked its complete supply chain to manufacture products for California Design Den, which became an e-commerce retailer selling its own fashion-forward products directly to consumers online.

With California Design Den’s push into e-commerce, it became apparent the SMB company (with about 250 global employees) faced the same tough supply chain questions as large retail customers, including maintaining enough inventory to meet customer demand in a timely, efficient way.

California Design Den depended upon a myriad of systems to track its complex forecasting and reordering processes. Team members typically planned inventory manually using desktop spreadsheet software, which could lead to excess inventory. Accurately forecasting demand and supply was essential to the company’s financial success—but it was also a challenge.

A couple years ago, California Design Den partnered with Pluto7, a technology solutions provider that offers a software as a service (SaaS) called Planning In A Box. Leveraging Google Cloud Platform machine learning and artificial intelligence, Planning In A Box intelligently helps predict demand and balances it with supply.

But that was just the beginning. “Along the way, we realized that to compete with larger retailers, make quicker decisions, and move faster, we needed to go further,” says Deepak Mehrotra, Co-founder and Chief Adventurer at California Design Den.

With guidance from Pluto7, California Design Den began migrating its database to Google Cloud Platform. Using Google BigQueryGoogle Compute EngineGoogle Cloud SQL, and Google Cloud Storage, and experimenting with Google Cloud Vision and Google Cloud AutoML, the company is reducing inventory carryovers by more than 50%, improving the accuracy of demand planning quarter over quarter, and gaining granular insights into how individual SKUs are performing.

“We would need an army of data scientists to make faster decisions on pricing and inventory levels. With Google Cloud Platform machine learning and artificial intelligence, we don’t need that. We can make much faster pricing decisions to optimize profitability and move inventory.”

Deepak Mehrotra, Co-founder and Chief Adventurer, California Design Den

No need for army of data scientists

“Using Google Cloud Platform machine learning and AI was essential for California Design Den if it was to compete successfully with larger retailers,” Deepak says.

For example, tastes and fashions in bed linens can change quickly and consumer prices fluctuate. With more than 2,500 SKUs, it wasn’t possible for California Design Den’s team to continuously monitor product demand and experiment with competitive pricing in real time.

“We would need an army of data scientists to make faster decisions on pricing and inventory levels,” says Deepak. “With Google Cloud Platform machine learning and artificial intelligence, we don’t need that. We can make much faster pricing decisions to optimize profitability and move inventory.”

By integrating all its data onto Google Cloud Platform, California Design Den’s team gains deeper insights into product sales over time, which in turn helps the company improve demand planning by better determining which styles to manufacture and sell in the future.

“When experienced employees leave, their knowledge leaves with them. By having all data in one place, and with machine learning and AI, California Design Den can go back in its history, look at products made or sold years ago, and analyze product performance.”

Deepak Mehrotra, Co-founder and Chief Adventurer, California Design Den

Merging visuals with data

Before Google Cloud Platform, team members had to dig through spreadsheets and run scenarios to get a sense of how particular products had sold. The next step was to perform keyword searches across the company’s photo library in the cloud to find each product’s image. From there, a team member would insert the product images into a presentation, along with relevant data points, to provide a report for stakeholders on how particular styles performed.

Today, California Design Den, with the help of Pluto7, is integrating its entire product image library with its database on Google Cloud Platform. Experimenting with Google Cloud Vision and Google Cloud AutoML, California Design Den is moving towards a day when team members can run sales scenarios and get deep background data on individual product performance while viewing images of the relevant products.

Merging product visuals with data will help designers and team members better understand sales patterns over time and in context. In the past, making correlations between things like which sheet colors sold well in California, compared to how the same sheet colors performed on the East Coast, was something that California Design Den employees primarily did in their heads.

“When experienced employees leave, their knowledge goes with them,” says Manjunath Devadas, Founder and CEO at Pluto7. “By having all data in one place, and with machine learning and AI, California Design Den can go back in its history, look at products made or sold years ago, and analyze product performance.”

“We are literally growing the complexity of our business on all levels, including designing, manufacturing, selling, reordering, inventory holding—everything.”

Deepak Mehrotra, Co-founder and Chief Adventurer, California Design Den

Reimagining supply-demand balancing

Pluto7’s mission statement is to democratize supply demand balancing with machine learning and AI. California Design Den is a case in point, as the combination of Planning In A Box and Google Cloud Platform gives the company greater control over its destiny.

“Big retailers used to tell us what to manufacture and how much they would pay for it,” says Deepak. “That was our primary business, and if we didn’t accept the terms, a competitor would.” Today, in addition to continuing to make products for retailers, California Design Den can design, make, and sell a variety of designs for itself, including custom and limited-edition products, thanks to Google Cloud Platform and Pluto7 software offerings. The payoff is not only in having a more diversified business. California Design Den also receives more favorable profit margins by selling its own products.

“We are literally growing the complexity of our business on all levels, including designing, manufacturing, selling, reordering, inventory holding—everything,” Deepak says. “We can make smaller batches. We can connect directly with consumers. We can identify the missing pieces—what should we produce next, when, and how much? We otherwise couldn’t afford the level of talent it would take to do this.”

Cutting through the noise

Google and Pluto7 software helped California Design Den reduce inventory carryovers by more than 50%. Inventory tracking and distribution, along with insights and visibility into product sales, are faster, more efficient, and accurate. Google Cloud Platform flexible pricing, speed, reliability, security, and scalability enable California Design Den to stay relevant and be more competitive.

In addition to benefiting from Google Cloud Platform, California Design Den relies on G Suite—also part of Google Cloud—to enhance collaboration among its global teams. Previously, the company’s email server would sometimes crash, due to the heavy load of sharing product photos and other data. “Gmail and Google Drive handle the everyday demands on the business effortlessly and reliably,” Deepak says.

“Google machine learning and AI enable us to cut through all the noise from raw data, so we can see what’s important. We can focus on analytics to guide us to success today and in the future.”

Deepak Mehrotra, Co-founder and Chief Adventurer, California Design Den

The company is exploring additional ways to leverage Google Cloud Platform in the near future. For example, one possibility is to import customer reviews from sites where products are sold into Google BigQuery, and to use that data to perform sentiment analysis via Google Cloud Natural Language. It could provide another valuable data source to help California Design Den’s team decide where to focus future designs.

“Google machine learning and AI enable us to cut through all the noise from raw data, so we can see what’s important,” Deepak says. “We can focus on analytics to guide us to success today and in the future.”

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How AI-powered ML Models Helps Run Unemployment Claims Verification at Scale

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Unemployment claims surged during the previous year, giving the U.S. local government agencies a tough time to manage and validate high volume claims on weekly basis through their inefficient systems. This led to many bad actors taking thorough advantage of the system's vulnerabilities. SpringML using Google Cloud products developed a framework that helps the departments differentiate potentially fraudulent claims from legitimate unemployment claims at scale and security by detecting anomalous patterns in large datasets. Learn how.

With unemployment application submissions reaching record numbers over the past year, state and local agencies in the United States have faced the challenge of processing unprecedented numbers of claims per week. The digital infrastructure most agencies have in place is unable to handle this volume, resulting in constituents waiting longer, and bad actors taking advantage of vulnerable systems. The Department of Labor Inspector General estimates that $63 billion in claims distributed is either an improper payment or fraud

Validating claims also requires secure data sharing with other agencies for document and identity verification. Government leaders need a way to allow case adjudicators to quickly and confidently release backlogged claims, integrate with existing systems, and segment legitimate claims from potentially fraudulent ones — all within limited government budgets — securely and at scale.

Implementing a fraud detection solution on Google Cloud

States were under pressure to release payments, while also filtering out potentially fraudulent claims. SpringML and Google Cloud developed a framework to give adjudicators a reliable verification process that quickly filters potentially fraudulent claims, while processing the remaining claims so benefits reach citizens in a timely manner. SpringML and Google Cloud, applied AI-powered machine learning models to detect anomalous patterns in large datasets. Using Google Cloud tools, SpringML implemented a solution to streamline workflows, improve efficiencies, automate processes and identify potentially fraudulent claims.

SpringML used a variety of Google Cloud products to deliver a fraud detection solution, including:

  • Google Cloud Storage to store and manage data
  • BigQuery to store tabular data and BigQuery Machine Learning (BQML) to conduct machine learning on that data
  • AutoML solutions to build predictive models and risk scoring
  • Visualization tools such as Looker and Data Studio to present data and help government leaders make informed decisions.

Implementing machine learning to detect improper payments allows agencies to classify claims as “fraud” or “not fraud” based on the number of flags, as well as prioritize the most urgent claims. Deploying intelligent virtual agents to handle frequently asked questions meant that live agents could focus their time on more challenging cases. 

Even once the pandemic is behind us, there will be bad actors trying to take advantage of overwhelmed or legacy systems. We’ve identified a few best practices for agencies managing enormous case loads and looking to improve improper payment analytics: 

  • Move your systems to the cloud. Many on-premises legacy systems can’t update their applications and scale to meet the volume of claims. Moving to a cloud environment enables rapid solution deployment and ingestion of large amounts of data without fear of overloading the system. The cloud scales with you–cost-effectively and securely. 
  • Understand patterns in the data. The answer is always in the data — we used deep analysis to help uncover suspicious patterns in large data sets. We implemented unsupervised machine learning to learn behaviors and create configurable rules that adjust to new information that comes into the system. We can uncover patterns that are likely associated with fraud – ones that a human might have missed. 
  • Use AI/ML tools to automate your existing systems and teams. These tools enable humans to work smarter and more efficiently. We automate anomaly detection and create dashboards for adjudicators to rapidly process claims. We are enabling the Wisconsin Department of Workforce Development by implementing automatic calculations and processing of recharge amounts, resulting in faster processing times and fewer human errors. Proactive fraud detection and timely calculation of recharge payment allowed DWD to ensure the benefits reached the right individuals.
  • Build flexibility into your systems. We discovered that fraud patterns change over time. For instance,flags for fraud during March-May 2020 were vastly different from those we found in June-July 2020. Google Cloud tools make it easy to continually update algorithms to detect patterns and integrate external data sources.

Using Google Cloud tools, we can update digital infrastructure and incorporate machine learning best practices to help organizations efficiently process large volumes of claims and identify high probability fraudulent ones. SpringML provides consulting and implementation services and industry-specific analytics solutions that deliver high-impact business value to accelerate data-driven digital transformation. Learn more about fraud detection and how to improve improper payments analytics by watching our webinar

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New Google Cloud regions are coming to Asia Pacific

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Digital tools offered by cloud computing are fueling transformation around the world. Team Google is expanding connectivity throughout the region by working with partners in the telecommunications industry to establish subsea cables. Read more.

Digital tools offered by cloud computing are fueling transformation around the world, including in Asia Pacific. In fact, IDC expects that total spending on cloud services in Asia Pacific (excluding Japan) will reach 282 billion USD by 2025.1 To meet growing demand for cloud services in Asia Pacific, we are excited to announce our plans to bring three new Google Cloud regions to Malaysia, Thailand, and New Zealand — on top of six other regions that we previously announced are coming to Berlin, Dammam, Doha, Mexico, Tel Aviv, and Turin.

When they launch, these new regions will join our 34 cloud regions currently in operation around the world — 11 of which are located in Asia Pacific — delivering high-performance services running on the cleanest cloud in the industry. Enterprises across industries, startups, and public sector organizations across Asia Pacific will benefit from key controls that enable them to maintain low latency and the highest security, data residency, and compliance standards, including specific data storage requirements.

“The new Google Cloud regions will help to address organizations’ increasing needs in the area of digital sovereignty and enable more opportunities for digital transformation and innovation in Asia Pacific. With this announcement, Google Cloud is providing customers with more choices in accessing capabilities from local cloud regions while aiding their journeys to hybrid and multi-cloud environments,” said Daphne Chung, Research Director, Cloud Services and Software Research, IDC Asia/Pacific.

What customers and partners are saying

From retail and media & entertainment to financial services and public sector, leading organizations come to Google Cloud as their trusted innovation partner. The new Google Cloud regions in Malaysia, Thailand, and New Zealand will help our customers continue to enable growth and solve their most critical business problems. We will work with our customers to ensure the cloud region fits their evolving needs.

“Kami was born out of the digital native era, where in order to scale globally we needed a partner like Google Cloud who could support us on our ongoing innovation journey. We have since delivered an engaging and dependable experience for millions of teachers and students around the world, so it’s incredibly exciting to hear about the new region coming to New Zealand. This investment from Google Cloud will enable us to deliver services with lower latency to our Kiwi users, which will further elevate and optimize our free premium offering to all New Zealand schools.” – Jordan Thoms, Chief Technology Officer, Kami

“Our customers are at the heart of our business, and helping Kiwis find what they are looking for, faster than ever before, is our key priority. Our collaboration with Google Cloud has been pivotal in ensuring the stability and resilience of our infrastructure, allowing us to deliver world-class experiences to the 650,000 Kiwis that visit our site every day. We welcome Google Cloud’s investment in New Zealand, and are looking forward to more opportunities to partner closely on our technology transformation journey.” – Anders Skoe, CEO, Trade Me

“Digital transformation plays a key role in helping Vodafone deliver better customer experiences and connect all Kiwis. We welcome Google Cloud’s investment in New Zealand and look forward to working together to offer more enriched experiences for local businesses, and the communities we serve,” said Jason Paris, CEO, Vodafone New Zealand

“Our journey with Google Cloud spans almost half a decade, with our most recent partnership and co-innovation initiatives paving the way for AirAsia and Capital A to disrupt the digital platform arena in the same vein as we did airlines. The announcement of a new cloud region that’s coming to Malaysia – and Thailand too if I may add – showcases Google Cloud’s continuous desire to expand its in-region capabilities to complement and support our aspiration of establishing the airasia Super App at the center of our e-commerce, logistics and fintech ecosystem, while enriching the local community and giving all 700 million people in Asean inclusivity, accessibility, and value. I couldn’t be more excited about this massive milestone and the new possibilities that Google Cloud’s growing network of cloud regions will create for us, our peers, and the common man.” – Tony Fernandes, CEO, Capital A

“Google Cloud’s world-class cloud-based analytics and artificial intelligence (AI) tools have enabled Media Prima to embed a digital DNA across our organization, deliver trusted and real-time news updates during peak periods when people need them the most, and implement whole new engagement models like content commerce, thereby allowing us to diversify our revenue streams and remain at the forefront of an industry in transition. By allowing us to place our digital infrastructure and applications even closer to our audiences, this cloud region will supercharge data-driven content production and distribution, and our ability to enrich the lives of Malaysians by informing, entertaining, and engaging them through new and innovative mediums.” – Rafiq Razali, Group Managing Director, Media Prima

“Google Cloud’s global network has been playing an integral role in Krungthai Bank’s adoption of advanced data analytics, cybersecurity, AI, and open banking capabilities to earn and retain the trust of the 40 million Thais who use our digital services to meet their daily financing needs. This new cloud region is a fundamentally important milestone that will help accelerate our continuous digital reinvention and sustainable growth strategy within the local regulatory framework, thereby allowing us to reach and serve Thais at all levels, including unbanked consumers and small business owners, no matter where they may be.” – Payong Srivanich, CEO, Krungthai Bank

“Having migrated our operations and applications onto Google Cloud’s superior data cloud infrastructure, we are already delivering more personalized services and experiences to small business owners, delivery riders, and consumers than ever before – and in a more cost efficient and sustainable way. With the new cloud region, we will be physically closer to the computing resources that Google Cloud has to offer, and able to access cloud technologies in a faster and even more complete way. This will help strengthen our mission: to build a homegrown ‘super app’ that assists smaller players and revitalizes the grassroots economy.” – Thana Thienachariya, Chairman of the Board, Purple Ventures Co., Ltd. (Robinhood)

Delivering a global network

These new cloud regions represent our ongoing commitment to supporting digital transformation across Asia Pacific. We continue to invest in expanding connectivity throughout the region by working with partners in the telecommunications industry to establish subsea cables — including Apricot, Echo, JGA South, INDIGO, and Topaz — and points of presence in major cities.

Learn more about our global cloud infrastructure, including new and upcoming regions.

  1. Source: Asia/Pacific (Excluding Japan) Whole Cloud Forecast, 2020—2025, Doc # AP47756122, February 2022

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Attention CFOs: How to Save Money on the Cloud

Cutting down on wastage, saving cost, and having a better control are some of the key priorities of organizations when it comes to the cloud. According to the 2018 State of the Cloud report by Rightscale, 35% of customer cloud spend is wasted, 58% of users cite cost savings as their top focus, and 76% consider spend control to be a challenge.

No wonder, customers are constantly looking to control costs and get the most capability out of every cloud dollar spent by their organizations.

Google Cloud’s simple, flexible, and fair pricing principles ensure that customers end up saving a lot more when they use Google Cloud and pay only for what they use and nothing more. Automatic discounts, recommendations, and smart tools to monitor and control usage, ensure that customers are treated fairly.

Watch this webinar to find out how you can save even more money on the cloud.

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The Indian COO’s Guide to Modernizing the Business for 2021

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Everything COOs need to know to make an informed decision
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